For homeowners, 2019 was a year of deep uncertainty. With political change causing ripples of turbulence throughout the economy, and with the unanswered questions about Brexit resulting in general insecurity, it felt like a challenge to know whether to sell or refurbish. To help you to decide what to do in the coming year, here’s a summary of what the 2020 property market forecasts are looking like.
Since 2017, there has been a dramatic increase in flat assets in the Greater London area. These are properties that have not risen in price since their purchase. The primary reason for flat assets is uncertainty, and if there is one thing that Brexit promises it is a host of question marks. This means that buyers have the upper hand, whilst potential sellers are at a disadvantage.
During times of uncertainty, smart moves include investing in the refurbishment of a property to increase its market value.
When the market does recuperate, the Financial Times is predicting a significant jump in property value. Some estimates put this as high as 10 per cent for high-end locations. However, a boom is always accompanied by stiff competition. When there is increased choice on the market, buyers demand more. This means that sellers need to pay attention to detail, and ensure that properties are market-ready ahead of the inevitable scramble.
Thoughtful extensions, increasing light, and modernising kitchens and bathrooms will all add competitive saleability to a property.
First-Time Buyers Are Still Out…For Now
Since prices stagnated, many London properties are still held by their first-time buyers. This is because it is impossible to move up the housing ladder until values start to rise. Added to this is the problem that the majority of potential first-time-buyers are still priced out of the market. As such, the last decade has seen little change.
Rising wages combined with government incentives mean that there will be increasing numbers of newcomers to the market. This extra demand should be reflected in an increase in prices. First-time homeowners who are looking to move up the ladder can maximise this potential by ensuring that properties are stylistically competitive.
Buyers are more tuned in than ever before to market potential. This means that areas in London that have traditionally been low on the radar are becoming more desirable, and a broader range of properties are becoming fashionable. Many buyers are looking for a project, while others retain a strong interest in the buy-to-let potential. A tastefully modernised home continues to have significant value in the rental market, even if there is no tube station close by.
When preparing a property for market, the advice from agents is to apply as much effort as possible to researching and understanding the target audience. Redecorations, renovations, and extensions may offer large rewards.
Parker Developments have been working within the Greater London property scene for more than twenty years. For more information about increasing the value and usability of your home, give us a call today!